LIC’s New Jeevan Shanti (Plan no 858) is an annuity plan that can be purchased by paying a lump sum amount.
LIC’s New Jeevan Shanti (Plan no 858) is an annuity plan that can be purchased by paying a lump sum amount. It is a non-linked, non-participating, single premium, deferred annuity plan. The plan provides guaranteed annuity rates at the inception of the policy.
This scheme provides an option for purchasing deferred and immediate annuities. Also, this plan provides for annuity payments of a stated amount throughout the lifetime of the annuitant, according to information on the LIC website. Following are important details of the plan you should know.
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Annuity Options
LIC’s New Jeevan Shanti provides two annuity options:
- Deferred annuity for Single life
- Deferred annuity for Joint life
Customers can purchase any of the annuity options. But once an option is chosen by the policyholders, it cannot be altered in future.
Who can buy?
LIC’s New Jeevan Shanti plan can be purchased by any individual aged 30 years or above. The maximum age at entry for the deferred annuity is 79 years.
The minimum purchase price for this policy is Rs 1.5 lakh (subject to a minimum annuity mentioned in the plan’s document). There is no maximum limit for the purchase price, annuity etc.
The LIC website says that a policyholder can get a higher amount of annuity if the purchase price is Rs 5 lakh or more. This is due to available incentives provided under this plan.
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Annuity Modes
LIC’s New Jeevan Shanti Plan provides for annuity payments either at monthly, quarterly, half-yearly or yearly intervals. Policyholders can choose any mode of payment of annuity under this plan.
Deferment period
This plan allows pension deferment for 1 to 12 years. In the case of a deferred annuity, the pension paid is after deferment of a minimum of 1 year and a maximum of 12 years. In the case of a single premium, the pension is paid immediately after the payment.
How much pension you can get for Rs 10 lakh
As per the sample annuity rates available on the LIC website, a New Jeevan Shanti policy purchased for Rs 10 lakh at the age of 30 will give Rs 86,784 if the annuity is deferred for 5 years. In case the annuity is deferred for 12 years, the annual pension will be Rs 1,32,920.
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If the policy is purchased with Rs 10 lakh at the age of 45 and deferred for 5 years, the annual pension will be Rs 90,456. In case of a 12-year deferment at the age of 45, the annual pension will be Rs 1,42,508.
Disclaimer: The above content is for informational purposes only. Please read the policy document carefully before buying any Life Insurance plan. Also, consult a retirement advisor before buying any annuity plan.
